In the Carls Jr. Restaurant Franchise Agreement, what is the state of formation for CJR?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement and any claim or controversy arising out of, or relating to, rights and obligations of the parties under this Agreement and any other claim or controversy between the parties shall be governed by and construed in accordance with the laws of the State of Tennessee without regard to conflicts of laws principles.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the franchise agreement is governed by the laws of Tennessee. However, the document does not explicitly state the state in which CJR (Carls Jr. Restaurants LLC) was formed.
While the governing law is Tennessee, this does not automatically mean that CJR was formed in Tennessee. The governing law dictates which state's laws will be used to interpret the franchise agreement, regardless of where CJR was formed.
A prospective franchisee should directly ask the franchisor where CJR is officially registered and incorporated. This information is crucial for understanding the legal and regulatory environment under which Carls Jr. operates.